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ARTICLE · 02 AUGUST 2016

You Have Breached A Contract: Can An Exclusion Clause Protect You From A Damage Claim?

Minden Gross LLP
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In this case, Dr. Chuang entered into an agreement with Toyota to build and operate a Lexus dealership in downtown Toronto.

CanadaLitigation, Mediation & Arbitration
A. Irvin Schein
A. Irvin Schein
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The recent decision of the Ontario Court of Appeal in Chuang v. Toyota Canada Inc.  provides a useful insight into the current state of the law relating to exclusion clauses.

In this case, Dr. Chuang entered into an agreement with Toyota to build and operate a Lexus dealership in downtown Toronto.

The agreement set out a number of deadlines that Dr. Chuang had to meet with respect to his obtaining financing, building the facility and opening the dealership for business.

The agreement also gave Toyota the right, in its sole discretion, to terminate the agreement if any of the deadlines were not met or if Toyota, in its sole opinion, determined that Dr. Chuang would not be able to meet any one or more of those deadlines.

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